Mohacsy's Safe Portfolio Member Forum

[RichardTC]

I'm not as optimistic about hordes of cash moving into the market. The prospect of sharply rising unemployment has the potential to trigger large redemptions from equity markets as people scramble to make ends meet. I'm not just talking about cutting back on 401k contributions, I'm talking about liquidating holdings just so they can survive. The last 5 years have taught me more about the marginal utility of a dollar than any textbook ever could. When you're unemployed, your benefits have run out and bills are due, you really don't care about taking a 10% hit on pulling money out of your 401k or "selling at the bottom." It's about survival at that point.